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Does Convergence of Rural Development Schemes Improve Household Welfare? An Investigation of Mahatma Gandhi National Rural Employment Guarantee Act in Odisha, India

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  • Narayan Chandra Nayak

    (Indian Institute of Technology Kharagpur)

  • Bimal Kishore Sahoo

    (Indian Institute of Technology Kharagpur)

  • Mamata Jenamani

    (Indian Institute of Technology Kharagpur)

  • Alok Ranjan Mohanty

    (Indian Institute of Technology Kharagpur)

  • Runa Sen Chatterjee

    (Indian Institute of Technology Kharagpur)

Abstract

India introduced convergence of rural development schemes with the Mahatma Gandhi National Rural Employment Guarantee Act. The basic premise was to establish better coordination among the line departments and dovetail the funds, ensuring greater welfare to the intended beneficiaries. This study makes an assessment of the impact of the convergence based on a sample primary survey in Odisha. The results suggest that the integrated schemes comprising several interlinked income-generating projects along with facilities for improved living conditions are ideal interventions. The beneficiary households benefit in terms of the increase in their average annual incomes, savings and wages. There are heterogeneous treatment effects according to varying household characteristics. The subjective assessment, however, indicates that possibly, the scheme has not reached the level of expectations. For convergence to become more effective, it is necessary to make the people active partners in the decision-making process. Awareness building is the key to achieving the better provision of the benefits while eliminating clientelism and elite capture.

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  • Narayan Chandra Nayak & Bimal Kishore Sahoo & Mamata Jenamani & Alok Ranjan Mohanty & Runa Sen Chatterjee, 2021. "Does Convergence of Rural Development Schemes Improve Household Welfare? An Investigation of Mahatma Gandhi National Rural Employment Guarantee Act in Odisha, India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(4), pages 1023-1042, December.
    • Handle: RePEc:spr:ijlaec:v:64:y:2021:i:4:d:10.1007_s41027-021-00343-9
    DOI: 10.1007/s41027-021-00343-9
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    1. Narayan Chandra Nayak & Bimal Kishore Sahoo & Alok Ranjan Mohanty, 2023. "Do Mahatma Gandhi NREGA and convergence measures arrest distress migration? An empirical assessment of the migration-prone regions of Odisha, India," Letters in Spatial and Resource Sciences, Springer, vol. 16(1), pages 1-22, December.

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